Guinness Nigeria Plc, a prominent player in Nigeria’s beverage industry, has announced its decision to halt the importation and distribution of certain Diageo international premium spirits, starting from April 2024.
This development will impact popular brands like Johnnie Walker, Singleton, Baileys, and others, imported under a 2016 sale and distribution agreement with Diageo.
The move aligns with Guinness Nigeria’s long-term growth strategy and corresponds with Diageo Plc’s plan to establish a new, wholly owned spirits-focused business to oversee the importation and distribution of its premium spirits portfolio in West and Central Africa, with Nigeria as a pivotal hub.
One of the key motivations behind this change is to reduce the company’s reliance on foreign exchange, mitigating the adverse effects of foreign exchange scarcity and exchange rate volatility on its financial performance.
John Musunga, Managing Director and CEO of Guinness Nigeria, emphasized that this strategic shift will allow the company to concentrate on its core business, which has consistently demonstrated growth despite challenging external conditions.
Guinness Nigeria will continue to manufacture and distribute its full range of non-alcoholic drinks, beer, ready-to-drink (RTDs), and locally produced spirits.
The company, known as a leading total beverage alcohol player, aims to strengthen its manufacturing, marketing, and distribution capabilities while minimizing forex exposure.
For the fiscal year ending June 30, 2023, Guinness Nigeria’s imported Diageo spirits products accounted for N14 billion, representing six percent of its total revenue. Importantly, there will be no alterations in Diageo Plc’s shareholding in Guinness Nigeria, with Diageo remaining a crucial shareholder.
This strategic realignment sets the stage for Guinness Nigeria’s continued growth and value creation for all stakeholders.